K33 Research Evaluates Whether it’s Time to Bid Farewell to Cardano (ADA)
Crypto researchers from K33 Research have expressed their strong opinion regarding Cardano (ADA) and have suggested that investors consider selling their ADA holdings due to what they perceive as a lack of clear and significant utility.
Why Should You Consider Selling ADA Now?
K33 Research, a reputable crypto research group, contends that Cardano is missing a crucial element – a practical use case that would provide value to its native token, ADA. They explain, “For a smart contract network, the token must have a compelling reason to hold value. However, Cardano lacks this reason or a clear strategy to attain it.”
Some Cardano supporters argue that the network facilitates around 90,000 daily transactions. However, K33 Research argues that these transactions do not contribute substantially to the blockchain. They state, “Aside from token transfers and a group of individuals holding tokens, there is minimal activity occurring within the Cardano Network. It is merely the illusion of activity.”
K33 Research further asserts that unlike other blockchains, Cardano lacks external evidence demonstrating significant activity. They refer to this absence of evidence as ‘proof by contradiction.’
The Absence of Stablecoins on the Cardano Blockchain
According to the report, a clear indication of limited activity on Cardano is the absence of major stablecoins such as USDT and USDC. K33 Research points out that this absence suggests a lack of significant decentralized finance (DeFi) activities taking place.
The stablecoins present on Cardano are allegedly backed by the platform and are valued at 76 cents to the dollar, which the report dismisses as “essentially worthless.”
What Lies Ahead for Cardano?
K33 Research holds a negative outlook for Cardano’s future. They draw comparisons to other blockchain projects that initially garnered little attention and eventually lost their relevance. The report asserts that successful blockchains evolve and improve over time, while those that commence with ambitious ideas but lack real-world utility eventually lose their appeal. Examples such as IOTA, NEO, and EOS are provided to support this notion.
Despite Cardano’s current market value of $19 billion, K33 Research believes that this is primarily due to its availability on various crypto exchanges, attracting new investors. The report criticizes the narrative surrounding Cardano, labeling it as “scientific mumbo-jumbo” that may confuse newcomers to the crypto space.
K33 Research anticipates a decline in Cardano’s appeal, expecting fewer new investors and questioning ADA’s long-term viability. Ultimately, the report concludes, “All indications point to Ada gradually losing its significance within the cryptocurrency realm.”